Goldman thinks Nvidia is going to beat and so does the options market
One of the most anticipated earnings releases of the quarter could spark big moves. Nvidia is set to report fiscal third-quarter results after stock market closes Wednesday. Analysts polled by LSEG expect the artificial intelligence darling to post earnings and revenue growth of more than 80% compared to the year-earlier period. Given the chipmaker’s massive size — it has a market cap of more than $3.6 trillion, the biggest of any U.S.-listed company — the results will reverberate across the stock market. If the options market is any guide, the results could spark a big move higher, according to Goldman Sachs. Analyst John Marshall said options are implying an 8.3% move in either direction for Nvidia. However, “both volumes and skew suggest investors are more bullishly positioned in NVDA than the S & P 500,” he added. Goldman itself is also bullish ahead of the report. Marshall said the Wall Street bank expects Nvidia to beat 3Q Street expectations driven by strong double-digit data center revenue growth, and FY1Q (April) to be the true “break out” quarter when the ramp up in Blackwell chip sales and improved supply-side conditions push analysts to revise earnings estimates higher. Nvidia shares ticked slightly higher in the Wednesday premarket as traders awaited the report. Elsewhere this morning on Wall Street , Pivotal Research hiked its price target on Netflix to $1,100 — the highest on Wall Street. “Given the success of the Tyson/Paul fight we expect Netflix to accelerate its offerings of ‘eventized’ live programming, which further enhances NFLX’s ability to offer households regular compelling content (juiced by the fact their competitors are now selling previously exclusive content to NFLX) = likely lower subscriber churn and greater ability to take price,” senior analyst and Pivotal founder Jeffrey Wlodarczak wrote in a Wednesday note.
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